Transcript
This presentation (the “Presentation”) has been prepared solely for information purposes in connection with Viking Supply Ships (the
“Company”).
This Presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter
into any contract or commitment whatsoever. No representation or warranty is given, express or implied, as to the accuracy of the
information contained in the Presentation.
This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company
and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that
are not historic facts. The forward-looking looking statements, contained in this Presentation, including assumptions, opinions and views
of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of
factors can cause actual events to differ significantly from any anticipated development.
Neither the Company, nor any of its parent or subsidiary undertakings or any such person’s officers or employees guarantees that the
assumptions underlying such forward-looking statements are free from errors and omissions nor does any of them accept any
responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted
developments.
The information contained herein has been prepared to assist the Recipients in making their own evaluation on the Company and does
not purport to contain all information that they may desire. In all cases, the Recipients should conduct their own investigation and analysis
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deem relevant. The Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of
this Presentation or of the information contained herein and neither of such parties (including without limitation their directors, employees,
representatives and advisors) shall have any liability for the information contained in, or any omissions from, this Presentation, nor for any
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Disclaimer
Celebrating 40 years of excellence
Founded in 1974 by Bendt R. Rasmussen.
Continuous focus on Anchor Handling Tug Supply
Vessels.
A key player in the North Sea Offshore market
through 4 decades.
The first OSV to the North Pole.
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Christen Sveaas has through
his fully owned investment
company, Kistefos, been a
majority owner of Viking
Supply Ships (through Transatlantic) since
1989. Kistefos has a long term investment
strategy for the OSV business.
Kistefos
VSS quick facts
• Viking Supply Ships is owned by the Swedish
company Rederi AB Transatlantic
• Rederi AB Transatlantic is listed at the
Stockholm Stock Exchange
• Headquarter in Copenhagen, Denmark
• Shore staff is about 50, offshore staff of about
600
• Total fleet value of NOK 4 billion
Viking Supply Ships in short
Rederi AB Transatlantic
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NE Greenland Icebreaking/seismic support 2012 &
2013, ice-mgt in 2008
West Greenland Moved more than 200 ice-
bergs during 2010 & 2011
Baltic Sea Seasonal Icebreaking since
2000.
Sea of Okhotsk Ice management and supply
operations in ice 2012-2014
Kara Sea Ice management
2014-2017
Alaska Ice management and
anchorhandling 2010, 2012,
2015-2017
The North Pole Ice management and
core drilling 2004
Barents Sea All duties 2011-ongoing
Northern Sea Route Passage of the Northern Sea
Route three times
Canada Ice berg management Grand Banks
Canada (2012 and 2013)
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The world as we see it
Loke Viking class
Fleet overview
With it’s high ice-class
and winterization the
Loke Viking class is
the ideal vessel for
sub-arctic operations
Vessels
Design
Build year
Ice-class
BP/ deck
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VS-4622L
2010-2012
Ice 1A, deice C
235 tonnes bollard pull
Tor Viking class
Combined Ice-breaker
and AHTS suitable in
harsh environment
operations as well as
the arctic
3
KMAR 808
2000-2001
Icebreaker Ice-10
202 tonnes bollard pull
Odin Viking
Medium sized AHTS
suitable for world-wide
operations, with a
proven track-record in
the North Sea
1
Moss Mar 424
2003
N/A
180 tonnes bollard pull
Frigg Viking class
Medium sized PSV
vessels with DP-2.
5
VS-470 Mk ll
2003-2007
N/A
710 sq. meters
SBS Cirrus
Large North Sea PSV
with good
stationkeeping and
DP 1
1
UT 705
1985
N/A
864 sq. meters
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vikingsupply.com
Medium sized vessels
suitable for the North Sea
as well as other major
offshore regions such as
West Africa and Brazil.
Modern fleet comprising of
large AHTS with mainly
high ice-class, likely to
obtain premium rates in
harsh environment areas.
AHTS PSV
Third business segment adding stability
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Services
Already two significant
contracts. A growing
business segment for the
future, which also increase
the market opportunities for
the ice-classed AHTS fleet.
Three solid and independent business segments adding strength to
future cash-flow generating capabilities
Viking
Supply Ships
AUV
Ice Towing
Surveillance
Satellite
Services
Weather Information
Logitistics
Vessels
Consulting Clients
More than a shipowner
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Unique
competence
and experience
with
Ice-management
Turn-key provider of all ice
management services.
Organization planning including single
point of control.
Safety and operation manuals.
Weather &ice data processing
Communication network.
Helicopter service.
Site specific emergency procedures.
On site research and mapping of
operating area by helicopter and
icebreakers.
Directing of ice-breaking.
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vikingsupply.com
Contract coverage
2014 2015 2016
50% 26% 36%
Backlog
Contract
coverage
Significantly increased contract
backlog, currently NOK 2,75 billion
The vessels on long term contracts
obtain premium rates
75% 45% 64%
Total
AHTS
Strong Management focus on
increasing contract backlog
and contract coverage has
stabilized cash flow at higher
levels
*All figures are as of
1st July 2014
Strong contract backlog and contract coverage
“
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vikingsupply.com
Strong development in EBITDA and Net Profit
Revenues increased from 411 MNOK in H1 2012
to 705 MNOK in H1 2014 through improved
contract coverage and development of the new
service segment.
EBITDA improved from 53 MNOK in H1 2012 to
190 MNOK in H1 2014.
Net profit improved with MNOK 152 from H1 2012
to H1 2014.
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Income statement
(MNOK)
H1
2014
FY
2013
H1
2013
FY
2012
H1
2012
Total Revenue 704,6 1006,9 447,5 897,6 410,8
Operating Costs -514,2 -707,5 -355,7 -701,3 -358,1
EBITDA 190,4 299,4 91,8 196,3 52,8
Depreciation -94,3 -175,6 -83,7 -177,2 -114,2
Impairment & sale of assets 0,0 -80,0 0,0 -13,6 0,0
EBIT 96,1 43,8 8,1 5,5 -61,5
Net financials -72,0 -102,8 -73,0 -162,7 -70,3
Tax -4,4 7,4 10,0 0,0 0,0
Profit/Loss 19,7 -51,6 -54,9 -157,2 -131,7
vikingsupply.com
Positive development in cash from operations
Cash flow from operating activities increased by
199 MNOK from H1 2012 to H1 2014.
Positive cash generation throughout the entire
period.
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Cash Flow
(MNOK)
H1
2014
FY
2013
H1
2013
FY
2012
H1
2012
Cash flow from Operations 138,0 121,7 1,4 40,5 -61,0
Cash Flow from Investment -163,4 -49,4 -34,4 277,3 -13,0
Cash Flow from Financing 47,2 -31,2 46,9 -231,5 169,4
Net changes in cash and cash equivalents 21,8 41,0 13,9 86,3 95,3
Cash and cash equivalents at the start of the period 238,2 197,1 197,1 114,7 114,7
Cash and cash equivalents at the end of the period 260,0 238,2 211,0 197,1 210,0
vikingsupply.com
Strong balance sheet with healthy equity ratio
Book equity ratio at 40 % and value adjusted
equity ratio at 45 % as of 30.06.2014.
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Assets
(MNOK)
H1
2014
FY
2013
FY
2012
Equity and liabilities
(MNOK)
H1
2014
FY
2013
FY
2012
Total equity 1 751,2 1 719,2 1 722,9
Vessel & equipment 3 762,7 3 669,8 3 773,8 Long-term bond loan 304,4 359,9 295,6
Tangible fixed assets 3 762,7 3 669,8 3 773,8 Long-term bank loan 1 726,8 1 647,4 1 807,4
Financial fixed assets 31,8 68,8 91,3 Other non-current liabilities 28,5 33,1 70,1
Total Fixed assets 3 794,5 3 738,6 3 865,1 Non-current liabilities 2 059,7 2 040,4 2 173,0
Inventories 13,2 24,2 12,1 Short-term bond loan 99,6 98,8 -
Accounts receivables 170,7 118,7 111,8 Short-term bank loan 200,5 189,6 187,1
Other current receivables 139,5 83,8 51,2 Accounts payable 65,6 38,4 27,9
Cash and cash equivalents 260,0 238,2 197,1 Other current liabilities 201,3 117,1 126,4
Current assets 583,4 464,9 372,2 Current liabilities 567,0 443,9 341,4
Total asset 4 377,9 4 202,5 4 237,3 Total Equity and liabilies 4 377,9 4 203,5 4 237,3
vikingsupply.com
Improved debt maturity profile
Figures are basis 31st December 2013 Figures after refinancing of AHTS icebreakers Tor, Balder and Vidar Viking which is expected to be completed during Q3 2014
VSS has successfully refinanced two secured bank
loans, and has agreed a committed term sheet for
the last remaining secured bank loan to be
refinanced during 2014.
Debt maturing in 2015 has been pushed forward
and loan terms have been improved.
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100
200
300
400
500
600
700
800
Rest of2014
2015 2016 2017 2018 After2018
MNOK
Bank debt Bond
100
200
300
400
500
600
700
800
Rest of2014
2015 2016 2017 2018 After2018
MNOK
Bank debt Bond
North Sea OSV market
Weaker market through 2014 than anticipated due
to a combination of increased supply and
periodically low activity.
North Sea market is dependent on vessels leaving
the region in order to see a continuous
improvement, but periods with high activity is
expected.
We still expect the activity in the region to be
strong in the longer run, with the current cost
saving initiatives from operators giving a more
healthy E&P market (but also temporary reduced
activity as a possible outcome).
Reduced activity can mostly be explained by the
growing gap between the number of rigs
contracted and rigs actually working (see figure),
as well as a strong cost focus among operators.
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VSS view on the long term offshore market
Currently modest growth in demand, but still
prospects for a strong development in the demand
for energy in the long run.
Several operators are reporting to be cash
negative after investments and dividend, which in
the short run is a inevitably loss for investments.
Modest profits also in the unconventional sector means
that the increased supply from shale oil and other
unconventional sources are not a threat against the oil
price, but more a guarantor against an oil price rally.
Despite a changing energy mix, more offshore wells
need to be drilled in order to meet future demand, and
we expect the activity in the Arctic regions to increase.
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